Crypto Advocates Dey Defend DeFi Developer for DOJ Suit
Big crypto advocacy groups like Paradigm, DeFi Education Fund, Blockchain Association and Crypto Innovation Council don file amicus brief to support Michael Lewellen. Dem dey challenge how DOJ extend Section 1960 about money transmission to punish non-custodial, open-source DeFi code authors. The brief talk say DeFi tools no dey hold funds or act as middlemen. E warn say to prosecute developers fit threat open-source innovation, dey push talent go outside country and dey weaken privacy tools and DeFi infrastructure. The coalition dey beg court to reject DOJ motion to dismiss and make declaratory judgment to clear the law. This action follow similar cases like US v. Storm and US v. Rodriguez wey dey target Tornado Cash under the same law. For related development, Eleventh Circuit recently reject Coin Center appeal about OFAC sanctions on Tornado Cash, remove another legal wahala about the mixer’s designation. Traders suppose watch this case because e fit affect DeFi regulation and market competition.
Bearish
By targeting open-source DeFi developers under the expanded money-transmission law, di DOJ dey increase legal wahala for the whole DeFi sector. For short term, dis kain mindset fit make traders lose confidence for DeFi projects wey base for US, slow development down, and reduce liquidity as developers and users dey look for better place. For long run, too much regulation fit make talent waka comot go abroad and make innovation for privacy and DeFi infrastructure slow down, wey go make market growth dey hard. Unless courts talk clear say make dem no include non-custodial code writing inside money-transmission rules, US DeFi fit still dey face wahala.